VZCZCXRO2363
PP RUEHMA RUEHPA
DE RUEHCO #0254 1690859
ZNR UUUUU ZZH
P 180859Z JUN 09 ZDK
FM AMEMBASSY COTONOU
TO RUEHC/SECSTATE WASHDC PRIORITY 0973
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHFR/AMEMBASSY PARIS 1466
RUEHLO/AMEMBASSY LONDON 0445

UNCLAS COTONOU 000254 
 
SIPDIS 
 
DEPT FOR AF/W ACOOK 
LONDON FOR PETER LORD 
PARIS FOR BKANEDA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PINR BN
SUBJECT: BENIN: PRESIDENT YAYI FIRES MINISTER OF FINANCE AND MAKES 
MINOR CABINET CHANGE 
 
REFERENCE: A) 08 COTONOU 750 AND PREVIOUS; B) COTONOU 246 
 
¶1. SUMMARY: On June 9, President Yayi dismissed his Minister of 
Economy and Finance, Soule Mana Lawani, because he had issued a 2008 
ministerial decree granting incentives bonuses to health workers, 
without getting the prior approval of the government. On June 12, 
Yayi appointed by decree Idriss Daouda, a former National Director 
of the Central Bank of West African States(BCEAO) in Cotonou, as the 
new Minister of Economy and Finance. He switched portfolios between 
the Ministry of Agriculture, Animal Husbandry and Fishing, Roger 
Dovonou, and the Ministry of Industry, Gregoire Akofodji. Besides, 
Yayi increased responsibility for the Minister of State, in charge 
of Economic Forecasting, Development and Public Action, Irene 
Koupaki, by tasking him with coordinating governmental action. While 
Lawani's dismissal was linked to a professional blunder, changes in 
the other three ministerial portfolios reflected a rather minor 
technical reshuffle. END SUMMARY. 
 
 
¶2. Following local press news that President Yayi fired his Minister 
of Finance and Economy, Soule Mana Lawani, on June 8, the Council of 
Ministers confirmed the dismissal on June 9. According to the 
Council of Ministers' report, the President dismissed Lawani just 
because he issued in 2008, together with the former Minister of 
Health Kessile Tchalla (He left Yayi's Cabinet in the 2008 
reshuffle), a ministerial decree to entitle incentive bonuses to 
public health workers without the prior approval of the Council of 
Ministers, a decree that appeared to be inconsistent with a 1986 law 
governing civil servant status in Benin. Additionally, the 
non-payment of the incentive bonuses to health workers prompted them 
into protest marches and slowdown strikes that had paralyzed the 
health sector for months (Ref B) President Yayi appointed Koupaki as 
the acting Ministry of Finance and Economy. On June 14, the Minister 
of Justice and Spokesman of the Government, Victor Topanou said, on 
TV, that the Ministry of Finance and Economy had committed a serious 
professional blunder by issuing the decree since its application 
would incur about 16 billons CFA expense, roughly USD 32, Million 
for the National Treasury, a significant amount which the government 
can hardly pay because of the budget constraints it is facing. 
 
¶3. On June 12, President Yayi issued Presidential Decree No 2009-260 
to confirm Lawani's departure from his cabinet and to bring changes 
to his cabinet. He appointed Idriss Daouda as the new minister of 
Finance and Economy to replace Lawani. BEGIN BIO NOTE: Daouda served 
in 2006 as Governor Alternate on the IMF Boards of Governors. From 
2006 to 2007 he was the National Director for Central Bank of West 
African States (BCEAO) in Cotonou. He also worked at the BCEAO 
Headquarters in Dakar, Senegal, where he made acquaintance with Yayi 
Boni who was also working at the bank. He retired in 2007. Post will 
provide further details on Daouda as they are available. END NOTE. 
 
The Minister of State, in charge of Economic Forecasting, 
Development and Public Action, Irene Koupaki, has become the 
Minister of State, in charge of Economic Forecasting, Development, 
Evaluation of Public Policies and Coordination of governmental 
Action. The Minister of Agriculture, Animal Husbandry and Fishing, 
Roger Dovonou, has taken over the portfolio of Industry while 
Gregoire Akofodji, the Minister of Industry has been appointed 
Minister of Agriculture, Animal Husbandry and Fishing. 
 
¶4. Change in the denomination of Koupaki's ministry implies an 
increase in responsibility since he will now be coordinating the 
other 29 remaining ministries, a kind of "Super Minister." Though 
President Yayi officially reiterated his confidence in him by 
increasing his portfolio, everyone contends that Koupaki has played 
a leading role in his cabinet since Yayi appointed him in 2006. 
 
¶5. In an effort to implement the incriminated decree and satisfy 
health workers' demands, the government decided to take exceptional 
measures (since this unexpected expense is not covered by the 2009 
budget) to secure payment to workers effective June 9, 2009. Payment 
will be spread over two years and paid by installments, representing 
respectively 50, 25, and 25 per cent of the incentive bonuses owed 
to workers. 
 
¶6. COMMENT: Some observers say that President Yayi might have well 
authorized the two Ministers to issue the Ministerial Decree in 
2008, when health workers' protests reached a climax, a piece of 
information difficult to check. Nevertheless, the dismissal of 
Lawani demonstrates that Yayi is still committed to implementing the 
Good Governance Charter he adopted in 2006, and which consists of 
ten cardinal principles including responsibility, transparency and 
accountability. END COMMENT. 
 
RAWLINGS